$700b appropriate size for forex reserves

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AN appropriate size for China’s foreign exchange reserves would be about US$700 billion, a senior official from the China Banking Regulatory Commission (CBRC) said. CBRC Vice Chairman Jiang Dingzhi also said some of the reserves should be used to invest in strategic resources, but didn’t say which resources the country should buy. China’s foreign exchange reserves are the world’s largest and recently exceeded US$1 trillion. Jiang made the comments in a question and answer interview published on the Web site of the Study Times, a weekly newspaper produced by the Communist Party of China’s cadre-training school.